Governments are loving Bitcoin

To understand an asset, you have to do the forensics of the asset and, importantly who owns it, and going forward, who can afford to own it.

Raw numbers of owners of an asset class are only one measure of political power. Wealth buys political influence via campaign contributions, philanthro-capitalism, revolving doors between political office and lucrative corporate positions, etc., wealth casts votes that count a little more.

Will governments ban bitcoin as a threat to their power?

Government do what benefits those who control the levers of power #dealwithit – Does bitcoin benefit those lever’ers of power? Yes. Expect…

  • Governments will not ban bitcoin and cryptocurrencies because those with the final say will nix any proposal to ban bitcoin.
  • Any restrictions that are imposed will likely be aimed at collecting capital gains taxes on gains made in cryptocurrencies rather than banning ownership.

Since the wealthy already pay the lion’s share of federal income taxes their over-riding interests are wealth preservation and capital appreciation, with lowering their tax burdens a distant third.

The appeal to the wealthy is countering the continual debasement in via diktat or currency crisis. Bitcoin has the advantage of being decentralized and independent of centrally-issued currencies. It is their hedge

Those who see governments banning ownership of bitcoin are ignoring the political power and influence of those who are buying enough bitcoin to matter.